Icesave and the one meeting
The general consensus in Iceland is that the Icelandic IceSave negotiation committee has done a serious mistake. So serious that there is no way Iceland can live up to the deal they made. The measurements of ability to pay are compared to the market in 2007 when there was still an upswing and money flowing everywhere. The Central Bank’s credibility has been lost because of this huge error. The market now is simply not the same, people out of jobs, companies bankrupt. This means that the money coming in to the government via taxes and other fees is not even close to the numbers of 2007.
According to Kári Sigurðsson, a lecturer at the University of Reykjavik, the Central Bank´s optimism about the gross national productivity, strong status of the Icelandic Krona (ISK), import / export balance, and national economic growth, simply will not stand any type of scrutiny. The Centrals Bank´s evaluation of the situation is closer to fantasy then reality, and it seems that the opinion was set forth to strengthen an already made decision.
The Central Bank´s report is made to cover up mistakes and not be honest about uncertain issues. It appears that the bank evaluates the situation such that it really doesn’t matter how much of the IceSave claims are returned, because the status of the Icelandic economy in seven years time will be so strong.
He finishes off by saying what many other experts have already said, that the nation cannot for certain pay the debts in the IceSave contract. A view that so many experts share, that also goes directly against the Central Bank´s evaluation of Iceland being able to fulfill the deal.
Here is a short article from the Financial Times about the IceSave deal.
And another one from the Daily Telegraph
Back to the IceSave committee.
There are strong rumours that the committee only met the British and Dutch committees once. Only once and a deal was made. I really do hope that someone can show me some evidence that this is not true.
Svavar Gestsson (no education) is the chairman. En ex politician from the left wing is chosen to lead a complex deal about involving national boundary’s, EU regulation, and other complex legal matters.
Others in the committee are;
Páll Þórhallsson (lawyer): Head of Division in the PM’s Office.
Indriði H. Þorláksson, Adviser to Minister of Finance
Áslaug Árnadóttir (lawyer), Director at the Ministry of Business Affairs
Martin Eyjólfsson, Head of Division, Ministry of Foreign Affairs
Sturla Pálsson, Director at the Central Bank
Popularity: 4% [?]
They may not have met in full more than once, but people definitely met more often than that. i.e. Gestsson met Roberts at the end of March:
http://www.island.is/media/frettir/60.pdf
If you look at island.is you can see that there was substantial negotiation going on, even if a chunk of it was totally off the wall (like the bond proposal in that link above).
And Arnadottir was involved with the original MoU with the NL back in October. You know, the one at 6.7% over 10 years with 3 years grace.
Saddled with a debt that will be born by those who had nothing to do with it? Not a chance!
Seize those and their assets who are responsible for this atrocity!
Totally agree. This is a mess, in all areas, political, financial, cultural and international.